Will BTC price rebound from current levels?

Bitcoin price is currently trading down -1.24% at $62,047, with a drop of over 2.25% over the last 24 hours and 16% below its all-time high of $73,835.

The price has fallen 8.75% over the last 30 days and 5.5% over the last three months, leaving market analysts wondering if the “cycle top” is in for the pioneer cryptocurrency.

Several on-chain metrics suggest that Bitcoin’s failure to print new highs after two retests is a “sign of weakness.” The Bitcoin long-term holder (LTH) inflation rate has increased steadily over the last two years, indicating that LTHs are adding to sell-side pressure as their Bitcoin holdings diminish.

At bull market tops, market inflation peaks above nominal inflation, which typically marks a high likelihood of the cycle top being in.

Another on-chain metric used to gauge market cycles and assessing Bitcoin’s bullish or bearish nature is Dormancy Flow. The Bitcoin Dormancy Z-score has sharply increased over the last 90 days, with a peak in April, suggesting a higher average age of coins spent in 2024.

However, three months later, the price has only gone down, and the Dormancy Z-score peak remains with a structure similar to the 2017 and 2021 tops. This suggests that Bitcoin price may have hit a cycle top, which could also be bearish for the broader crypto market.